Does the boss need to weigh in on the war in the Middle East?

Published Mon, Nov 13, 2023 · 06:00 AM

AFTER reading the details of Hamas’ attacks on Israel on Oct 7, Brad Karp, who runs law firm Paul, Weiss, sat at his computer and wrote a memo to his roughly 2,000 employees.

He didn’t ask the firm’s spokesperson to draft it; he channelled his grief into a company-wide e-mail and hit “Send”, just as he was moved to do after the overturning of Roe v Wade and the killing of George Floyd. But as an American business leader condemning Hamas’ attacks, he said, he felt surprisingly lonely.

“I was disappointed that fewer leaders than I anticipated spoke out emphatically, clearly and with moral clarity on this issue,” said Karp. “If you asked any of these leaders whether they were horrified by the slaughter of innocent civilians by Hamas, they would tell you privately that they were horrified.”

Company executives have, over the past month, faced a dilemma that they’re by now well-practised in confronting: whether to engage with a large humanitarian or social issue – in this case, the war between Israel and Hamas. This time, many say, responding – with a public statement, internal discussion, a donation or even social media parameters for staff members – presents complexities that they have not experienced when wading into other recent social crises.

More than 200 US businesses have issued statements condemning the Hamas attacks in Israel that killed roughly 1,400 people, according to a tracker from Jeffrey Sonnenfeld, a professor at the Yale School of Management. Some business leaders made donations to humanitarian organisations and pointed their employees to company-sponsored mental health resources. A smaller number said they also communicated with their staff about the rising death toll of civilians in the Gaza Strip.

Still, there is clear pressure to say something, partly because of the precedent set over the last several years, when many executives established a pattern of weighing in on social and political upheaval. In a Morning Consult poll of more than 2,000 Americans, conducted in mid-October, 58 per cent said businesses should make a statement “condemning violence and loss of life” resulting from Hamas’ attacks, and 62 per cent said companies should make humanitarian donations.

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“It’s unlike any other topic I’ve seen in a decade of advising companies on these themes,” said Joelle Emerson, founder of Paradigm, a firm that has worked with more than 1,000 companies on diversity, equity and inclusion. “A lot of companies might not feel they have the context to comment intelligently on what’s happening.”

Even as the pressure for companies to comment on social issues accelerates, reasons for them to be reticent are also increasingly clear. Andrew Ward, a management professor at Lehigh University’s College of Business, noted that CEOs who were politically vocal sometimes drew negative attention to their businesses, which could affect workers. There are also financial considerations to wading in.

Gabe Zichermann, who runs workshops for companies on discussing contentious issues, said the protest against Bud Light this year after it hired a transgender influencer was “a watershed moment in corporate activism”.

“The boycott was able to really impact the company’s earnings very quickly. That’s steering people toward public neutrality,” he added.

A handful of executives who condemned Hamas’ violence did so immediately and forcefully. David Solomon, CEO of Goldman Sachs, wrote to his staff in Tel Aviv, Israel, on Oct 8, the day after the attack. “The dynamics in the Middle East have always been difficult and complex,” he wrote. “But, these attacks are terrorism and violate our most fundamental of values.”

At Warner Bros Discover, CEO David Zaslav told his staff that he was “shocked and saddened” by the attacks, which he cited as “the deadliest in Jewish history since the Holocaust”. JPMorgan Chase’s statement called the war “a terrible tragedy”.

David Barrett, who runs the software company Expensify, which has roughly 140 employees, explained that before he issued an internal response to the war, he called meetings for his human resources leaders to discuss the Israeli-Palestinian conflict and review its historical and geopolitical context.

“We’re not historians,” he said. “A lot of us didn’t understand the issue very well, didn’t understand the history, didn’t understand the kind of impact it was having on people.”

Barrett said he felt more confident in responding to the conflict – which he did by internally condemning Hamas’ attacks and discussing the violence that people in Gaza were experiencing – because of the many times he and his company had addressed complicated social issues.

“We’ve had political upheaval, a war in Russia, Roe v Wade, Covid,” he said.

But across many US workplaces, employees have looked to their executives for compassionate responses to the war and felt dismayed.

Michael Pentz, a public defender in Los Angeles, waited for the Los Angeles County Public Defender’s Office to release a statement mourning lives lost in the conflict. He recalled how his boss had rushed to address other social issues, such as last year’s leaked audio of racist remarks from Los Angeles City Council members.

Pentz and his fellow Jewish colleagues visited one another’s offices to vent the pain they’ve felt about their department’s silence. Pentz wrote to his department head, Ricardo Garcia, on Nov 2.

“I’ve been waiting, with all the measured patience my broken heart can manage,” he wrote in an e-mail. “I know that some have advised you that it is best to steer clear of comment. Sometimes that is an option.”

Shortly after, Garcia released a taped statement: “Please don’t mistake my silence until now as indifference,” he said, in a recording obtained by The New York Times. “My heart has been heavy. I’ve been sad as I experience this with all of you, and I feel what’s going on inside the office.”

As business leaders grapple with their responses to the war, some are also facing an uptick in employee reports of harassment and discrimination, particularly of anti-Semitism, said Lisa Banks, founding partner of the employment law firm Katz Banks Kumin.

There has also been an increase in anti-Muslim incidents in US workplaces since the war broke out, according to the Council on American-Islamic Relations. The organisation received 774 requests for assistance and reports of anti-Muslim incidents from Oct 7 to Oct 24, a 245 per cent increase from the average for a similar period in 2022.

Still, some business leaders have said that in responding to the war, they had been able to engage in constructive conversations with employees who held various political views.

Patrick Kinsel, CEO of the tech company Notarize, which has roughly 250 employees in the US, put out several statements over e-mail and Slack about the war and rising threats of anti-Semitism around the globe, including one Oct 13 that read: “To my Jews, love you.”

Several Muslim employees reached out to Kinsel to say their communities were also suffering. He has since put statements on Slack acknowledging the many killed in Gaza because of the war.

“It’s been a very healthy dialogue,” he said.

To Kinsel, his efforts to keep addressing the conflict are important to the business itself. “It’s been proven that diverse communities are more successful,” he explained. “It’s not only about an aspiration. It’s literally in our self-interest.” NYTIMES

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